EMI Calculator

Work out the monthly payment on a home, car, or personal loan — plus how much of it is interest.

  • Free, updates instantly as you type
  • Shows total interest vs. principal
₹0 / month
Total interest
₹0
Total payment
₹0
Principal Interest
Year-by-year schedule

Assumes a fixed interest rate for the full tenure and standard reducing-balance EMI. Your actual lender's terms, fees, and any rate changes may differ.

Frequently asked questions

How is EMI calculated?

EMI = P × r × (1 + r)n / ((1 + r)n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly installments.

Does this include processing fees or insurance?

No — this is the pure principal-and-interest EMI. Lenders often add processing fees, insurance, or other charges on top, which this doesn't account for.

What if my loan has a floating interest rate?

This calculator assumes the rate stays fixed for the entire tenure. With a floating-rate loan, your actual EMI (or tenure) will change if the rate moves.

Why is most of my early EMI interest?

Interest is charged on the outstanding balance, which is at its highest at the start. On the ₹10,00,000, 20-year example, about 83% of the first year's payments is interest. As the balance falls, more of each EMI goes to principal.

How can I reduce my EMI?

You can lengthen the tenure (which lowers the EMI but raises total interest), negotiate or switch to a lower rate, or make a part-prepayment. Check your lender's terms first — some charge fees for prepayment.

Does this match my bank's figure exactly?

It should be very close for a fixed-rate loan. Small differences come from rounding, the date your first instalment falls due, and any fees your lender adds.

How an EMI works

An EMI (equated monthly instalment) is the fixed amount you pay your lender every month until a loan is cleared. Each payment is split into two parts: interest on the balance you still owe, and principal, which reduces that balance. Because interest is charged on what's left, the first payments are mostly interest and the last ones are mostly principal, even though the total never changes. The calculator uses the standard reducing-balance formula, with the monthly rate equal to the annual rate divided by 12.

A worked example: the same loan over different tenures

Take a loan of ₹10,00,000 at 9% a year:

TenureMonthly EMITotal interestTotal you pay
5 years₹20,758₹2,45,501₹12,45,501
10 years₹12,668₹5,20,109₹15,20,109
20 years₹8,997₹11,59,342₹21,59,342

Stretching the loan from 5 to 20 years cuts the monthly payment by more than half, but it multiplies the interest by almost five. On the 20-year loan you pay back more in interest than you originally borrowed. A longer tenure makes a loan easier to carry each month, never cheaper overall.

What to keep in mind

  • Compare total cost, not just the EMI. A lower EMI often hides a much higher total.
  • Choose the shortest tenure you can comfortably afford. Even a few years less saves a large amount of interest.
  • A small rate difference matters. On a ₹10,00,000 loan over 20 years, 8% costs about ₹10,07,000 in interest, 9% about ₹11,59,000 and 10% about ₹13,16,000.
  • This calculator assumes a fixed rate for the whole tenure. If your loan has a floating rate, your EMI or tenure can change when the rate does.
  • Fees aren't included. Processing fees, insurance and charges for late or early payment are extra, and your lender's own schedule may differ slightly because of rounding and how days are counted.

Want to see where each rupee goes month by month? Our guide How loan EMI really works shows how the interest and principal split changes over the life of a loan.

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